Gazprom Takes Back Eni and Enel’s Russian Assets

Eni CEO Paolo Scaroni (L) and Gazprom Vice-President Alexander Medvedev. Photo: Reuters

Back in June, ENI’s CEO Paulo Scaroni told the Wall Street Journal that he was optimistic that the company would retain its stake in Gazprom Neft, which it purchased in the controversial auctions of Yukos assets. This article, which speculated that this would be “a coup” for ENI, also stated “At the time, it was widely believed the Italians were acting as a front for Gazprom.” Today’s news brings us the latest developments. From Forbes.com:

Gazprom to exercise right to buy Eni, Enel Russian assets by year-end – report MILAN (Thomson Financial) – Gazprom has decided to exercise its call option to buy Russian oil and gas assets held by Eni SpA and Enel SpA before the end of the year paying more than 4.6 bln usd, the daily Finanza & Mercati said, without citing sources. Last April the EniNeftgaz consortium, comprising Eni (60 pct) and Enel (40 pct), paid 5.8 bln usd for a series of former Yukos assets. Independently Eni bought 20 pct of Gazprom Neft. Gazprom has an option to buy the Gazprom Neft stake held by Eni and 51 pct of the Russian assets held by EniNeftgaz within two years. F&M said that in recent months Russian banks have expressed scepticism about Gazprom exercising the options because of a lack of cash. But the paper added that Gazprom’s management has decided to go ahead and exercise the rights before the end of the year.